U.S. President Donald Trump’s decision to impose 50 per cent tariffs on the vast majority of Canadian goods in response to “discriminatory” measures, including provincial boycotts of American booze, will risk “further escalation” of the trade war with Canada, a U.S. alcohol industry body is warning.
The U.S. said Monday it will be imposing an additional 50 per cent tariff on Canadian imports due to retaliatory and “discriminatory” measures Canada took in response to Trump’s tariffs last year.
Trump signed three executive orders, each one using a different justification for the new tariff: the provincial and territorial boycotts on American alcohol products, Canada’s retaliatory tariffs on U.S.-made vehicles and auto parts and quotas on American dairy imports under Canada’s supply management system.
The U.S. booze industry group said they “appreciate” the Trump administration’s recognition of the “significant damage” Canadian restrictions had caused to U.S. distillers.
“We had hoped, however, that this issue could be resolved without further escalation,” said Chris Swonger, president and CEO of the Distilled Spirits Council of the United States.
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Trump’s tariffs “deepens trade tensions and raises the risk of further retaliation at a time when many U.S. hospitality businesses continue to face financial hardships,” Swonger said in a statement.
The group urged both sides to de-escalate the trade war.
“We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits and avoids further harm to the U.S. hospitality sector,” Swonger said.
Domestic trade and major projects will be on the agenda as Canada’s premiers gather Tuesday in Prince Edward Island for a three-day meeting coloured by a renewed tariff threat from Trump.
The annual summer gathering of provincial and territorial leaders will culminate with Prime Minister Mark Carney joining the discussion Thursday. The premiers will also meet with Indigenous leaders later Tuesday.
Key issues among the provinces have included efforts to cut down any remaining barriers to internal trade and advocate for big infrastructure projects that could bring investment and jobs to their regions.
But there’s also fresh economic uncertainty after Trump’s decision to impose 50 per cent tariffs on certain Canadian products within 30 days.
–with files from The Canadian Press
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